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UK Industry. Siren actively
analyse the film market and keep an eye on emerging
trends as follows:
- Global screenings, reduced time to secondary markets,
speed of transfer from screen to DVD/rental, Interactive
Digital and an opening of the retail distribution
channel (supermarkets) and internet downloads will
continue to make an impact.
- Theatrical release for Indie films will continue
to be increasingly more difficult. 69% of screens
and 31% of sites are multiplexes and owned by US/Hollywood
studios or European companies. There is more pressure
to screen blockbusters due to US studios supporting
advertising and promotion spend.
- Indie film cannot rely on theatrical release. In
fact, it's no longer be even necessary, VOD/PPV
and ID will create a “remote control”
society shaping the industry.
- Lack of brand loyalty to Multiplex sites, the only
driving factor being geographical location will encourage
Multiplexes to consolidate and differentiate.
- There is a huge issue with film funding; more needs
to be done to highlight good projects from bad. City
money will often go to a “creative process”,
little is done once the money is given out to make
the film successful as investors can reap the benefits
whether the film achieves commercial theatrical success
or not.
- The increase in purchase of “home cinema”
AV and DVD price decreases compound a distinct trend
for home viewing, with only exceptional special effects or the promise of 3D
cited as a reason for consumers not to wait for DVD
release.
- Multiplexes are going to have to differentiate
to survive. More screens no longer equates to larger
audiences. As DVD’s decrease in price concession/ticket
revenue cannot continue to increase.
- The value of internet film revenues is predicted
to increase four times from 2002 to 2010, to hit $3.6bn.
- The US market will constitute 47% of world revenue.
- E trailers are predicted to take the majority of
the market with hard copy sales diminishing. In 2004,
hard formats held 99.3% of the market, by 2010 this
is expected to drop to 72.9%.
- Digital sales are expected to grow from $11.7M
in 2004 to a massive $976.5M in 2010.
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